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Investing can be confusing. Luckily, Cramer has mapped out some road rules for all you Home Gamers trying to navigate the jungle that is Wall Street. Think of it as "Mad Money 101" –- some fundamental advice to keep in mind as you play the market. Whether you're a first time investor or a seasoned financier, it's always good to remember the basics.
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Dec.04
7:27 PM ET
Tuesday, 4 Dec 2007
Making Too Much Money

Believe it or not, it’s possible to make too much money, Cramer said on Tuesday’s Mad Money.

Home Gamers should be able to beat the S&P by doing homework and sticking to the Mad Money disciplines, but if their performance was really astonishing last week - when the market was hot - it’s worrisome to Cramer.

Chances are that investors who owned the homebuilders last week were up big, as those stocks were among the best performers. Toll Brothers [DIS  Loading...      ()   ] gained 16% from Monday to Friday. Lennar [LEN  Loading...      ()   ] was up 15%. Those are some good profits, but they don’t change Cramer’s thesis that the homebuilders are still untouchable.

The same goes for the mortgage insurers like MBIA [MBI  Loading...      ()   ]. That sector of the financials was also on a tear last week. But continuing to own stocks either of these sectors is a risky move, Cramer said.

Even though he thinks the broader market is bottoming, he doesn’t think the homebuilders or the mortgage insurers are even close. These stocks have fallen hard, but it doesn’t mean they can’t go lower – and it certainly doesn’t mean there’s reason for them to go up.

Cramer urged people who owned the homebuilder and mortgage names last week to take those profits and sell the stocks into strength.

It’s great to take advantage of short-term moves, Cramer said. But it is not where the biggest wins come from. Those are where the long-term plays like defense and oil come in.



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